Canada Post Bleeds CAN$269 Million Operating Loss in 2013: Desperation Leads to Real Estate Sales
Since 2007, Canada’s snail-mail volume has declined by 30 percent, in an “historic shift” from paper to digital communications. Failing to adapt, Canada Post reported on May 5 that it had lost CAN$269 million in 2013 in operating costs alone.
Canada Post has “recognized the urgent need for fundamental changes in order to secure the future of the postal service for Canadians,” and released the Five-Point Action Plan in December of 2013. If the plan is successful, the Post believes that it will add $700-900 million per year to the company.
In the meantime, the Post has sold corporate real estate to generate revenue. The sale of the Vancouver Mail Processing Plant alone brought in $109 million. After such sales, the Post reported a before tax loss of $125 million.
Some aspects of operations were successful in 2013, despite financial losses. Worker injuries and safety were a priority, and the Post saw a 19 percent decline in “lost-time injury frequency” from 2012.
Canada Post has a monopoly on first-class mail and is under mandate by the federal government to remain financially self-sufficient. That makes staying in the black imperative if it wishes to remain operational.
Source: Digital Journal.